Wireless network operator Clearwire Corp. (CLWR), Monday said its proposed acquisition by majority shareholder Sprint Nextel Corp. (S) is the best strategic alternative available for Clearwire's minority shareholders.
In a communique to shareholders, Clearwire board said it has "unanimously concluded that the proposed transaction with Sprint is the best strategic alternative for stockholders, representing fair, attractive and certain value, especially in light of the Company's limited alternatives and the well-known constraints of its liquidity position."
In December, Sprint agreed to buy the remaining 49.2 percent stake in Clearwire that it does not already own for $2.97 per share in a deal valued at $2.2 billion. Sprint already owns a 50.8 percent stake in Clearwire. However, in January, Clearwire received an unsolicited offer from Dish Network to acquire the company for $3.30 per share, trumping Sprint's offer by 11 percent.
In February, Clearwire said its special committee will continue to evaluate the Dish proposal and engage in discussions with each of Dish and Sprint, as appropriate.
Clearwire shareholders are scheduled to meet on May 21 to vote on the proposed Sprint transaction.
CLWR is currently trading at $3.37, down $0.01 or 0.30%, on the Nasdaq.
S is currently trading at $7.16, up $0.01 or 0.07%, on the NYSE.
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